Many ecommerce stores around the world are continuing to be plagued by a lot of Web scams and online crimes. The most prevalent problem of a lot of ecommerce establishments today are illegitimate transactions that are done in their platforms with the use of stolen credit cards, compromised e-wallets and hacked bank accounts. Most of the latest fraud protection technologies aren’t enough to block all fraudulent transactions and unauthorized payments from going through the checkout and payment processing systems today, in general.
This doesn’t just cause ecommerce store owners to lose a lot of revenues. Aside from having their products stolen and returning payments along with hefty fees and penalties for chargebacks and the like, they could end up losing the ability to process online transactions. The fraud protection measures of many ecommerce stores around the world at the moment can’t detect all illegitimate transactions and unauthorized payment. So sadly, when ecommerce stores go beyond the standard chargeback limits imposed by banks, credit card companies, merchant account providers, third party payment processors and e-wallet platforms – They’re flagged as a high risk with potentially fraudulent transactions. Their merchant accounts and payment gateways could then be revoked, suspended or terminated altogether.
On top of all these problems, ecommerce businesses can also be included in the database of blacklisted merchants. This makes it even more difficult for an ecommerce store owner to get a new merchant account or a payment gateway, even a third party solution. Plus, they have all those debts to pay up, which were caused by the accumulation of chargebacks, fees and penalties. This is why the fraud protection measures that you implement into your ecommerce store can make or break your business.
With this, here’s a fraud protection primer that can allow you to avoid the most common problems of an ecommerce store owner when it comes to illegitimate transactions and other types of cyber fraud. By tweaking each of these tips to best suit the back end and front end systems of your ecommerce establishments, you could also fortify the security of your platform.
Basic Fraud Protection Tips for Ecommerce Store Owners
- Use 3D Secure if you’re accepting Visa and MasterCard payments in your ecommerce store. This is usually provided by a lot of merchant account providers, banks, credit card companies, third party payment processors and even some e-wallet platforms. This has been proven as an effective fraud protection solution for reducing fraudulent transactions and unauthorized payments in many ecommerce establishments worldwide.
- Implement AVS (Address Verification System) and other similar technologies into the checkout processes of your ecommerce platform. Many options are bundled with solutions that you can get from a lot of merchant account and online payment gateway providers. You should ask the representatives and technical support staff of your payment processor for the available options that could be most suitable for your ecommerce establishment. This is an ideal fraud protection option to strengthen the security of the back end and front end systems of your ecommerce store.
- Remind your customers that the name of your business will appear in their statements a few days or so once the transaction has been completed. This is an effective fraud protection measure, especially if you do this before charging the customer for the purchase. Many cases of friendly fraud involve customers forgetting that they placed a transaction in your ecommerce store for some of your products.
By using these quick and simple fraud protection tips for your ecommerce store, you can significantly reduce the chances of fraudulent transactions and unauthorized payments going through the back end and front end systems of your ecommerce store and payment processing platform. It might also be in your best interest to sign up at BigScammers.Com to receive instant alerts and real time updates about the latest ecommerce scams today. This way, you’ll be able to prepare and defend your ecommerce establishment against the newest tactics and schemes that are currently being used by criminal groups and scammers to defraud your business.